Major Changes Are Coming to Ontario This January
If you live, work, or do business in Ontario, January 2026 will bring some of the biggest legal and regulatory changes the province has seen in years. These aren’t minor tweaks to existing rules—they’re fundamental shifts that will affect how you search for jobs, file your taxes, maintain your home, and navigate your career.
Whether you’re a homeowner installing new safety equipment, a job seeker finally seeing salary ranges in postings, a professional moving from another province, or simply an Ontario taxpayer, these changes will touch your life directly.
Here’s everything you need to know about the eight major laws and rules taking effect this January, explained in plain language.
1. Salary Transparency Becomes Mandatory for Ontario Employers
Starting January 1, 2026, job hunting in Ontario will look completely different thanks to new pay transparency requirements under the updated Employment Standards Act.
What Employers Must Do Now
Any Ontario employer with 25 or more employees must include the expected salary or compensation range in every public job posting. The range can’t be absurdly wide either—the gap between the lowest and highest figure cannot exceed $50,000 (except for executive roles paying over $200,000 annually).
This means no more applying to jobs only to discover in the final interview that the pay is nowhere near what you expected.
AI Disclosure Requirements
Employers must also clearly state whether they’re using artificial intelligence to screen resumes or evaluate candidates. This addresses growing concerns about algorithmic bias and gives applicants insight into how their application will be reviewed.
No More Interview Ghosting
Here’s a change that job seekers will appreciate: if you attend an interview, the employer must tell you the outcome within 45 days. No more waiting indefinitely or wondering if your application disappeared into a void. This requirement applies only to candidates who actually interviewed, not those who simply submitted applications.
Why This Matters
These rules aim to level the playing field in hiring. When salary information is hidden, it often benefits employers in negotiations and can perpetuate pay gaps based on gender, race, or bargaining skills. With transparent ranges, you can make informed decisions about which opportunities to pursue and negotiate from a position of knowledge rather than guesswork.
2. New Ontario Tax Brackets and Rates for 2026
Your 2026 tax situation will be affected by updated provincial income tax brackets reflecting annual adjustments.
Updated Tax Brackets
- Up to $53,891: 5.05%
- $53,891 to $107,785: 9.15%
- $107,785 to $150,000: 11.16%
- $150,000 to $220,000: 12.16%
- Over $220,000: 13.16%
Remember, these rates apply only to provincial tax. You’ll still pay federal income tax on top of these amounts.
The Surtax System Continues
Ontario’s two-tier surtax adds extra tax for higher earners. If your basic provincial tax exceeds $5,818, you’ll pay an additional 20% surtax on the amount over that threshold. Once your basic tax goes above $7,446, the surtax jumps to 56% on the excess.
This structure means your effective tax rate can increase significantly once you cross these thresholds, something particularly relevant for middle and upper-middle-income households.
Tax Relief for Lower Incomes
Ontario’s non-refundable tax reduction provides relief at the bottom end. The basic reduction is $300, with an additional $554 for each dependent child or family member with a mental or physical impairment. For some lower-income residents, these reductions can eliminate provincial income tax entirely.
3. Professionals Can Now Work Across Provinces More Easily
January 2026 brings a revolutionary change for professionals moving between provinces through Ontario’s “As of Right” rules under the Ontario Free Trade and Mobility Act.
The 10-Day Rule
If you’re a licensed professional in another Canadian province—whether you’re an engineer, doctor, architect, electrician, or another regulated worker—you can begin working in Ontario within 10 business days once your credentials are verified.
You’ll have up to six months to complete full registration with Ontario’s regulatory bodies while working legally in your profession.
Why This Change Happened
Ontario identified internal barriers between provinces as a major drag on economic growth and workforce efficiency. Why should a fully qualified doctor licensed in Alberta need to spend months getting re-certified before treating patients in Ontario? The new system recognizes that Canadian professional standards are generally equivalent across provinces.
Healthcare Impact
This change is expected to significantly impact Ontario’s healthcare system by reducing the time it takes for doctors, nurses, and other health professionals to begin practicing. With healthcare worker shortages across the province, faster credentialing could help reduce wait times and expand capacity.
Goods and Services Recognition
The same principle applies to businesses. Products and services that legally meet standards in other Canadian provinces will now be automatically recognized in Ontario without requiring duplicate approvals or certifications.
4. Expanded Carbon Monoxide Alarm Requirements for All Homes
Fire safety rules are getting stricter in January 2026, with expanded requirements for carbon monoxide alarms in residential properties across Ontario.
Who Needs CO Alarms
You must install carbon monoxide alarms if your home has any of these features:
- A fuel-burning appliance (like a gas stove or furnace)
- A fireplace (wood-burning or gas)
- An attached garage
- Heating that comes from a fuel-burning system elsewhere in the building
Where to Install Them
Alarms must be placed:
- Adjacent to every sleeping area
- On every floor of your home, including the basement
- Even on levels without bedrooms
Special Rules for Apartments and Condos
If you live in a multi-unit building, CO alarms are required if:
- Your unit has a fuel-burning appliance or fireplace
- Your unit is above, below, or beside a service room with fuel-burning equipment
- Your unit is near the building’s garage
- Your heating comes through vents from a fuel-burning system elsewhere
Alarms must also be installed in public corridors if those areas are heated by fuel-burning systems.
Landlord and Tenant Duties
Landlords are responsible for buying, installing, and maintaining CO alarms, including annual testing. They must also provide tenants with instructions for basic maintenance.
Tenants must notify their landlord immediately if an alarm malfunctions or shows warning signs of failure.
Why This Matters
Carbon monoxide is odorless and colorless, making it impossible to detect without an alarm. It’s produced whenever fuel burns incompletely and can be deadly. These expanded requirements aim to prevent CO poisoning deaths and injuries, which disproportionately occur in residential settings during winter months when heating systems run constantly.
5. Ontario Public Service Returns to Full-Time Office Work
The work-from-home era is ending for Ontario’s public sector employees. Starting January 5, 2026, Ontario Public Service employees and those working for provincial agencies, boards, and commissions must return to the workplace five days per week.
The Transition
More than half of public service workers were already in the office full-time before this announcement. Those who weren’t have been transitioning gradually, moving from three days per week to four days as an interim step.
The government framed this change as aligning public sector work arrangements with standards emerging across Ontario’s private sector, where many employers have also ended or reduced remote work options.
Who This Affects
This policy impacts thousands of provincial government employees across ministries, agencies, and public bodies. It doesn’t directly affect private sector employees or federal workers, though it may influence broader workplace trends in the province.
6. Toronto Gets New Indoor Temperature Standards
While this rule doesn’t take effect until June 1, 2026, Toronto approved it as part of the 2026 regulatory package, and it will significantly impact apartment living.
Cooled Space Requirements
Apartment buildings without air conditioning must provide tenants with access to at least one cooled amenity space maintained at no more than 26 degrees Celsius (about 79 degrees Fahrenheit).
This requirement applies from June 1 through September 30 each year—essentially covering the summer heat season.
Landlords must inform tenants about the location of the cooled space and its available hours.
Why This Rule Exists
Extreme heat events are becoming more frequent and more dangerous. Many older apartment buildings in Toronto lack air conditioning, leaving vulnerable residents—particularly seniors and those with health conditions—at risk during heat waves.
This bylaw aims to provide basic heat relief without requiring expensive building-wide air conditioning installations.
7. Higher Water and Waste Fees for Toronto Residents
Toronto homeowners and renters should prepare for increased municipal costs starting January 1, 2026.
Solid Waste Management Fees
Annual waste management fees for single-family homes will be:
- Small bin: $317.85
- Medium bin: $385.86
- Large bin: $524.06
- Extra-large bin: $607.86
Water Rate Increases
For an average household using 230 cubic meters of water annually, expect to pay about $40 more per year, bringing total annual water costs to approximately $1,118 in 2026.
While these increases may seem modest on a monthly basis, they add up over time and represent part of a broader trend of rising municipal service costs across Ontario’s major cities.
8. Federal Labour Mobility Act Takes Effect
January 1, 2026 also marks the implementation of the federal Free Trade and Labour Mobility in Canada Act, which works hand-in-hand with Ontario’s provincial changes.
What It Does
The federal legislation ensures that:
- Goods and services meeting provincial standards will satisfy comparable federal requirements
- Workers licensed by provinces or territories can work in equivalent federal jurisdictions
This creates a more unified Canadian economic space where interprovincial trade barriers are minimized and workers can move more freely across the country.
What These Changes Mean for You
These eight changes represent more than routine policy updates—they signal a fundamental shift in Ontario’s approach to work, housing, safety, and economic integration.
For Job Seekers: You’ll have better information going into applications and interviews, reducing wasted time on roles that don’t match your salary expectations.
For Professionals: Moving to Ontario from other provinces becomes faster and less bureaucratic, opening up more career opportunities.
For Homeowners and Tenants: Safety requirements increase, but so do costs for municipal services and compliance with new standards.
For Employers: Hiring becomes more transparent but also more regulated, requiring updates to job posting practices and recruitment systems.
For Taxpayers: Updated tax brackets affect take-home pay, particularly for those at the edges of bracket thresholds.
Preparing for January 2026
Most of these changes take effect automatically without requiring action from residents. However, there are some steps worth taking now:
If you’re a homeowner or landlord: Review your carbon monoxide alarm setup to ensure compliance with the expanded requirements. Purchase and install any additional alarms needed before January 1.
If you’re job hunting: Start taking advantage of salary transparency in job postings. Use the disclosed ranges to inform your negotiation strategy and filter opportunities more effectively.
If you’re a professional licensed in another province: Gather your credentials and documentation if you’re planning to work in Ontario. The faster process still requires verification, so having everything ready helps.
If you employ people in Ontario: Update your job posting templates to include salary ranges and AI usage disclosures. Ensure your recruitment process can meet the 45-day candidate notification deadline.
If you’re budgeting for 2026: Factor in the new tax brackets and, if you’re in Toronto, the increased water and waste fees.
The Bigger Picture
These changes didn’t happen in isolation. They reflect broader policy priorities: making labour markets more efficient, increasing workplace fairness, improving public safety, and integrating Canada’s internal economy.
Some changes will be immediately noticeable—like seeing salaries in job postings or installing new CO alarms. Others will shape your experience more subtly, like the gradual effect of professional mobility on service availability or the cumulative impact of municipal fee increases.
What’s clear is that Ontario in 2026 will operate under a substantially different set of rules than Ontario in 2025. Whether you’re planning your career, managing a household, running a business, or simply living your daily life, understanding these changes puts you in a better position to adapt successfully.
January 2026 isn’t just another new year—it’s a reset that will influence how Ontarians live and work for years to come.
Frequently Asked Questions
Will these changes affect people who work remotely for companies outside Ontario?
Yes, in many cases. If you physically work from Ontario, even for an out-of-province employer, Ontario employment standards generally apply to you. This means pay transparency and hiring rules could affect your job search, though your current employment relationship depends on various factors including your contract terms and where your employer operates.
Do I need to file anything or register somewhere for these changes to apply?
No. Most changes apply automatically. However, you may need to take action depending on your situation—like homeowners installing CO alarms or employers updating job postings. For most people, compliance happens through landlords, employers, or service providers rather than direct interaction with government.
Will salary transparency actually lead to higher wages?
Not automatically, but it can help. Knowing the salary range before applying means you won’t waste time on positions with unacceptable pay. It also strengthens your negotiating position and may pressure employers to align their offers with market rates, especially in competitive fields. Over time, increased transparency tends to reduce pay disparities and arbitrary lowball offers.
What happens if my landlord doesn’t install the required CO alarms?
Landlords who fail to meet fire code requirements, including CO alarm installation, can face orders from fire officials and potential fines. If your landlord hasn’t installed required alarms, contact your local fire department, as they enforce these safety standards.
Can employers still negotiate salary above the posted range?
Yes. The posted range represents the expected compensation for the role, but it’s not a hard ceiling. If you bring exceptional qualifications or negotiate effectively, employers can offer above their posted maximum. The rule simply requires upfront disclosure of the expected range, not a cap on actual offers.
